With reference to the impact of unions on company performance, it can be said that companies wishing to become more competitive must
A) continually monitor their labor relations strategy.
B) prohibit unions.
C) actively encourage unions.
D) deny collective bargaining rights to their employees.
E) pay workers well above market rates.

Question

Quizplus · Accepted Answer

Continually monitoring their labor relations strategy can help companies ensure that they maintain good relationships with their employees and avoid costly disputes or disruptions in operations. It allows them to adapt to changing union dynamics and make informed decisions about how best to manage their workforce. Prohibiting unions or denying collective bargaining rights to employees can lead to low morale, employee turnover, and decreased productivity, which can ultimately harm company performance. Encouraging unions may not be necessary or feasible for all companies, but actively engaging with employees and addressing their concerns can help build trust and foster a positive workplace culture. Paying workers well above market rates may also not be sustainable or necessary for all companies, and may not necessarily lead to better performance if not accompanied by other strategies to improve productivity and efficiency.

With Reference to the Impact of Unions on Company Performance